SAP and Novell this week said they plan to extend their development partnership to deliver the next generation of integrated governance, risk and compliance software applications.

Company officials said the integrated applications will help bridge the gap between business processes and IT security and controls, giving enterprise customers a holistic view of their internal financial reporting and compliance procedures.

Jim Ebzery, Novell's senior vice president of identity and security products, said the new application suite will let "an organization's compliance and risk management program become a powerful strategic business asset."

Governance and compliance breakdowns, the kind that sent CEOs to prison in waves and cost France's second-largest bank, Societe Generale to lose $7.1 billion at the hand's of one rogue trader, have largely faded from the headlines in the past year.

But analysts say demand for GRC software and storage services remains robust. IDC is predicting that storage services alone will grow from annual sales of $31.7 billion last year to roughly $40 billion by 2012.

Many companies are opting for Software-as-a-Service options, particular on the storage side, to reduce upfront investment costs and provide greater visibility and accessibility to third-party auditors and regulatory agencies.

Novell and SAP, which first announced their GRC pact in March, will share responsibility for marketing the new applications and setting the strategic direction for future product roadmaps.